More than 4.9 million units - China's car exports in 2023

Over 3.02 million units - China's new energy vehicle companies will continue to be the "global sales champion" in 2023

Over 35% - China's new energy passenger vehicle market penetration rate in 2023

……

 

In the past 2023, China's auto industry has delivered a brilliant answer: production and sales have ranked first in the world for 15 consecutive years, and the production and sales of new energy vehicles have ranked first in the world for 9 consecutive years, and the export volume has reached a new high. Behind the vivid figures is the vitality and tenacity of China's automobile industry, as well as the confidence and confidence of China's manufacturing.

 

From scratch, from small to large, China's automobile industry, which has been struggling for 70 years, is facing a new round of changes in the global automotive industry, anchoring high-quality development, overcoming difficulties, taking advantage of the momentum, and moving forward bravely towards the goal of building an automobile power.

 

Production and sales hit a new high and continued to be the first in the world

On January 11, the China Association of Automobile Manufacturers announced the production and sales of automobiles in 2023. According to the data, in 2023, China's automobile production and sales will reach 30.161 million and 30.094 million respectively, a year-on-year increase of 11.6% and 12% respectively, hitting a record high and achieving double-digit growth, ranking first in the world for 15 consecutive years.

 

In 2009, China's automobile production and sales exceeded the 10 million mark for the first time, becoming the world's largest automobile production and sales country, and has maintained this record for 15 consecutive years.

 

Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers, said that in 2023, China's automobile production and sales will generally show a development trend of low before and then high, reaching a high point at the end of the year.

 

Production and sales exceeded 30 million units, which is closely related to the pull of national policies. Taking passenger cars as an example, the market performed poorly at the beginning of the year due to policy switching and price fluctuations. Starting from the second quarter of 2023, driven by the central and local promotion policies, the release and implementation of the China VI emission standards for light vehicles, and the launch of a large number of new models, the market demand will gradually recover, and the "Golden September and Silver Ten" will be ushered in again.

 

Automobile is an important pillar industry of the national economy, and the production and sales of automobiles have jumped to a new level, which not only shows the vitality and tenacity of China's automobile industry, but also a realistic portrayal of the accelerated adjustment, optimization and upgrading of China's automobile industry structure.

 

In the past year, Chinese brands have continued to grow upward. The annual sales of Chinese brand passenger cars increased by 24.1% year-on-year, and the market share rose to 56%. Taking the FAW Hongqi brand as an example, the cumulative sales volume for the whole year of 2023 will be 370,000 units, a year-on-year increase of 29.5%.

 

In the past year, Chinese automakers have begun to transfer technology to foreign automakers; Volkswagen, BMW and other international auto giants have invested in domestic factories, expanded their scale, and continued to be optimistic about the Chinese market; "New energy vehicles, lithium batteries and photovoltaic products" have become the "new three" for exports......

 

In the past year, new energy vehicles have achieved a historic leap. Looking at the data, production and sales are booming, ranking first in the world for 9 consecutive years; Looking at the company, in the fourth quarter of last year, BYD's pure electric passenger car sales surpassed Tesla for the first time to become the world's first, and the cumulative sales of new energy vehicles last year exceeded 3.02 million, winning the global new energy vehicle sales champion.

 

Production, sales, exports, and global auto sales...... These "world's firsts" are not only a demonstration of China's super-large-scale market advantages, but also a witness to China's solid steps from a large automobile country to an automobile power.

 

Looking forward to China's auto market in 2024, Chen Shihua said that with the continuous promotion of the country's policies to promote consumption and stabilize growth, as well as the continuation of preferential measures such as the extension of vehicle purchase tax exemption, the market vitality and consumption potential will be further stimulated, and the total sales of automobiles are expected to exceed 31 million.

 

Exports hit a new high, reflecting the "hard power of overtaking"

At the beginning of the new year, Shanghai Waigaoqiao Haitong International Automobile Terminal is a busy scene, carrying more than 5,000 Chinese-made cars SAIC's 7,600-space dual-fuel ocean-going ro-ro ship, which is about to make its maiden voyage to Europe. In Changchun, Jilin Province, workers are stepping up to make export orders in the prosperous factory area of FAW Hongqi Manufacturing Center......

 

In 2023, China's vehicle exports will be 4.91 million units, a year-on-year increase of 57.9%. NEV exports totaled 1.203 million units, reflecting a 77.6% y/y increase. From exceeding 2 million units in 2021 to 4.91 million units in 2023, China's automobile exports once again set a new historical record.

 

Automobile exports have developed by leaps and bounds, and new energy vehicles have become a new driving force for growth. Since 2023, China's new energy vehicle exports have maintained high growth, with a growth rate exceeding that of traditional fuel vehicles, with nearly 1 out of every 4 exported vehicles coming from new energy vehicles.

 

Behind the brilliant results is "hard power". China's new energy vehicle exports are not only "further", the number of export countries is increasing, and at the same time, the developed economies of Europe and the United States have gradually become the target market.

 

Traditional car companies such as FAW, SAIC, and Chery, as well as new car-making forces, have accelerated their entry into overseas markets. Last year, Chery Holding Group exported more than 937,000 vehicles, a year-on-year increase of 101.1%, ranking first in China's own brand passenger car exports for 21 consecutive years.

 

"We want to break the stereotype that Chinese brands are 'cheap'." Yang Dayong, chairman of FAW Import and Export Co., Ltd., said that the Hongqi brand took the initiative to choose developed regions as target markets and opened sales channels in 17 countries including Saudi Arabia and Norway.

 

It is gratifying that with the acceleration of vehicle exports, the industrial chain is also accelerating to "go to sea". The export share of core components such as power batteries and motors began to grow rapidly.

 

As the pace of Chinese cars going global accelerates, overseas consumers are increasingly favoring Made in China. "When we first started selling MG four years ago, we were selling about 60 cars a month in our stores, and now we can sell 150 cars a month, which is amazing." Pasquale, head of an MG car dealership in Australia, said.

 

China's automobiles going out also show the characteristics of "both volume and price", and the average export price of automobiles will rise year-on-year in 2023. "Our products are very competitive and can produce products that meet the needs of global consumers, so they will be favored by foreign markets." Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers, said.

 

The market penetration rate of new energy vehicles has reached a new high, reflecting the high-quality development of the industry

According to data from the China Association of Automobile Manufacturers, China's new energy vehicle production and sales in 2023 will be 9.587 million and 9.495 million units, respectively, an increase of 35.8% and 37.9% year-on-year.

 

Looking back at the development process of China's new energy vehicle industry, it took 10 years for the market penetration rate to go from 0 to 1%, 3 years from 1% to 5%, 1 year from 5% to 15%, and 2 years from 15% to 30%, entering the pragmatist purchase stage. According to the data released by the National Passenger Car Market Information Association, the market penetration rate of China's new energy passenger vehicles will reach 35.7% in 2023, an increase of 8.1 percentage points.

 

The market penetration rate of new energy vehicles continues to increase, what is the confidence to gallop all the way? "New energy vehicles have sprung up, helping China's auto industry to 'change lanes and overtake'." Cui Dongshu, Secretary-General of the National Passenger Car Market Information Association, believes that the new energy vehicle industry has strong resilience, obvious advantages in the industrial chain, and continuous injection of development momentum into technology, which is an important growth point for the high-quality development of China's automobile industry, and a vivid practice to accelerate the construction of a modern industrial system.

 

For industrial development, policies should take the lead in building a "support axis" for development. "In recent years, various departments have launched more than 70 support measures, and various localities have introduced supporting policies in combination with their own actual conditions, creating a good development environment for the new energy vehicle industry." Wei Qijia, director of the Industrial Economy Research Office of the Economic Forecasting Department of the State Information Center, said.

 

Industrial cooperation, deducing a new paradigm of reverse joint venture. In Changchun, in winter, it is icy and snowy outside, and it is hot indoors. As the first plant of the Germany Audi brand in China specializing in the production of pure electric vehicles, the Audi FAW new energy vehicle project with a planned investment of more than 30 billion yuan is stepping up construction and is expected to be put into operation by the end of 2024, with an annual production capacity of more than 150,000 units.

 

Relying on the new development momentum and new advantages shaped by the new energy vehicle industry, we will continue to attract global automakers such as Audi, Volkswagen, BMW, and Volvo to invest in China. According to Tao Gao, co-director of automotive analysis at S&P Global Automotive Greater China, in the past, foreign parties provided technology, and Chinese parties provided markets and people, but now it may be China's own brands that provide technology, and foreign parties that produce production capacity and personnel.

 

Forging long boards and making up for short boards. It is a "compulsory course" in front of China's new energy vehicle industry to continuously stimulate the consumption potential of the new energy vehicle market, continuously optimize the layout of charging piles, enhance the independent innovation momentum of enterprises, increase core technology research, and better ensure the stability of the industrial chain and supply chain.

 

In the eyes of many industry insiders, the rise of China's auto industry is a high-quality development path from "bringing in" to "going out", among which new energy vehicles provide a good opportunity for China's auto industry to deeply participate in international market competition. "With the steady recovery of China's economy and the significant growth momentum of the automobile market demand, China's auto market will enter a new stage of annual sales of 30 million vehicles." Xu Haidong said that new energy vehicles and vehicle exports will remain the main drivers of China's auto industry in 2024.

 

Source: Xinhuanet